Forex traders rehab – recovering 1 pip at a time
So you’re on a losing streak and your capital is down by 50 percent from recent highs, you keep on punting away in the belief that you’re about to recover all your losses. You just know that if you can hit that big winner it will bring your account back up to where it was when you started. You are very excited about the prospect of making everything back you have lost recently and are looking forward to finally making some decent coin above and beyond your initial account deposit.
WARNING!!!! YOU NEED TO ENTER FOREX TRADERS REHAB.
While losing a few trades in a row does not necessarily mean you need professional help, it does mean you need to stop and pull yourself away from the market and objectively think about your trading decisions. Over trading and obsession with the market are two very real problems that many traders experience, with a little time and effort on your part you can easily over come these often made trading errors. This article will give you some good pointers in how to effectively pull yourself out of a rut of trading mistakes and help to push you on along the correct path. Combined with using price action strategies, a good mindset is crucial to trading success.
Rehabilitating traders 1 pip at a time
High my name is “insert your name here”, and I’m a trade-aholic, today my goal is to not make a trade. This cliché first born in alcoholics anonymous groups is just as relevant to alcoholism as it can be to trading. The fact is that over-trading is no different from alcoholism or any other form of addiction or lifestyle abuse. Many people become addicted to trading and don’t even realize it, it is easy for forex trading, or any other form of trading to not seem like gambling because it doesn’t necessarily have the stigma attached to it as gambling does and is seen as a more acceptable profession than say, professional poker playing. However, once you start becoming preoccupied with your trading while you are away from your computer screen you have essentially entered the realm of gambling.
Problem gambling is any gambling behavior that disrupts your life. If you are losing money in the markets that you cannot afford to lose than you are at least hurting yourself and probably other people in your life as well. This is a really serious problem that needs to be fixed as soon as possible. It is just too easy to get sucked into the trap of believing you can make back the money you lost in the markets, only to continue losing it and continuing believing you can make it back. Just as the main theme of alcoholics anonymous is to quit drinking cold turkey, the only way to effectively eliminate your gambling habit in the markets is to stop trading with real money until you realize what you are doing.
Steps to recovery
Admitting you have a problem with trading
Tell yourself each morning when you wake up that you are addicted to trading. You need to be consciously aware that you have developed a bad habit so that you can work on fixing it. The first step to solving your addiction to trading is to admit that you indeed do have a problem. Many people do not even make it to this first step because their ego is too big to even see the fact that they are over-trading and probably completely out of control. A classic hallmark of people with gambling addictions is not being able to control the impulse to gamble, even when they know their gambling is hurting themselves or their loved ones.